Analyst Josh Jennings of TD Cowen reiterated a Buy rating on Avita Medical (RCEL – Research Report), retaining the price target of $15.00.
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Josh Jennings has given his Buy rating due to a combination of factors that highlight Avita Medical’s promising future. The company is actively expanding its portfolio to encompass a broad range of wound care solutions, which presents significant opportunities to increase its total addressable market. These strategic moves are expected to positively impact the company’s profitability goals.
Avita Medical’s projections for 2025 include impressive revenue growth of 55-65%, a notable improvement from the 29% growth in 2024. The company’s plans to achieve positive free cash flow in the latter half of 2025 and reach GAAP profitability by the fourth quarter of the same year are considered ambitious yet feasible. Jennings’s confidence in these targets is bolstered by the company’s recent acquisition of Cohealyx, a collagen-based dermal matrix product, which has the potential to significantly expand Avita’s market presence in the treatment of burns and wounds.
According to TipRanks, Jennings is a 5-star analyst with an average return of 8.3% and a 54.33% success rate. Jennings covers the Healthcare sector, focusing on stocks such as Edwards Lifesciences, Stereotaxis, and Vericel.
In another report released on February 14, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $19.00 price target.